Considering ALF ate cats, I'd be concerned for all the fuzzy little Muppets he'd meet on the Street. Maybe they would look appetizing too? I could certainly survive without Elmo, but what if ALF found Grover? Could Super Grover save the day or would there be a furry massacre?
Don't get me wrong, it could still be fun to watch, but the possibility of flying foam and stuffing could create quite the horror scene and the demise of our most beloved furry ones. I'd approach the project with caution